Tuesday, February 23, 2010

Does an artist require a business license if you are selling paintings on ebay or an online gallery? -

Does an artist require a business license if you are selling paintings on ebay, or an online gallery?I am a visual artist; I paint with pastels, and I want to sell my paintings and giclees in online galleries and on ebay. I am worried that if I make over a certain amount that I am required to have a business license or some other legal issue. I am also worried about how to keep my taxes affordable and legal.

Regardless of where you sell; if you buy/or make items to then sell for profit -then this makes you a Business.It s not the amount of money that you make (or lose in the first year of set up- in fact a good accountant can help you lose money so that you may actually have a tax rebate)its the fact that you will be trading and have taxes to pay (when you are actually in profit)A good accountant will advise you of your obligations and will more than save you what his yearly fees costAs a Business seller trading on the internet you need to be legally offering your buyers their rights under the distance selling regulations (google DSR regulations)On ebay you are required to register as a Business seller from day one, and with the tax man within 3 months Unsure if you are in UK; but you can finfd business info on many sites such as Business Link, HMRC (Customs and Taxes)

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